Reciprocity and Stakeholder Responsibility

Question: Discuss about the Reciprocity and Stakeholder Responsibility. Answer: Introduction Edward Freeman explains that the theory of stakeholder emphasizes on the identification of groups of stakeholders in an organization and they are needed to be managed (Freeman Moutchnik, 2013). In this business report, Freemans stakeholder theory will be analyzed for the organization Woolworths and the neglected group of stakeholder for that company will also be discussed. Moreover, initial engagement strategies for these stakeholders will also be illustrated Theory of Stakeholder Mapping Freeman et al. (2012) depict that a stakeholder have an in-depth understanding of a company and their objectives and hence they need to be managed efficiently by the organization. R. Edward Freeman redraws the traditional input/output model of stakeholder mapping that comprises of employees, suppliers, financiers, communities, political groups, competitors, trade associations, customers and trade unions (Freeman Moutchnik, 2013). According to this mapping, stakeholders are categorized majorly into three classes- internal stakeholders, connected stakeholders and external stakeholders. Stakeholder mapping of Woolworths Woolworths is the 2nd largest Australian Company and the largest retail organization and operates 1000 stores across Australia along with 968 Supermarkets and 19 convenience stores (Woolworths.com.au, 2017). Thus, it is crucial for the managing authorities to manage all their stakeholders to accomplish their organizational goals and profitability effectively. The stakeholder mapping for Woolworths is illustrated as: Level of Power High Power, Low Interest High Power, High Interest Sponsors Regulators Trade Unions Australian Government Joint Venture Partners Customers Shareholders Corporate responsibility panel Low Power, Low Interest Low Power, High Interest Employees Supply Chain Partners Community Level of Interest Table 1: Stakeholder Matrix mapping for Woolworths (Source: Created by Author) Moreover, the internal stakeholders of Woolworths are the managing authorities and employees, while the external stakeholders are the Australian government, local people, media group, celebrity endorsements, logistics supplier, rainforest alliance, third party intermediaries and wholesalers (Freeman Moutchnik, 2013). However, as a part of the connected stakeholders, Woolworths have advisors, auditors, consultants and competitors- Myer, Coles, ALDI, LIDL and Costco (Afr.com, 2017). Engagement strategies for employees betterment Woolworths should take initiatives for treating their employees well, so they feel motivated to associate with the organization. The managing authorities of Woolworths should create a positive working environment and increase employee engagement programs. Moreover, providing workplace training and recognition to the employees and including them in the decision-making programs also increase the probability of employee retention. Conclusion Thus, it can be concluded that employees are the neglected stakeholders of an organization event through they are the most powerful people in the organization as they interact with the employees directly and know their demands and requirements. Thus, it is crucial for the managing authorities to take initiatives like employee motivation strategies, involving them in important decisions in order to make their employee happy and satisfied. Reference List Afr.com, Woolworths and Coles are ripe for attack from Aldi, Lidl and Costco. (2017).Financial Review. Retrieved 17 March 2017, from https://www.afr.com/personal-finance/shares/woolworths-and-coles-are-ripe-for-attack-from-aldi-lidl-and-costco-20150603-ghfise Fassin, Y. (2012). Stakeholder management, reciprocity and stakeholder responsibility.Journal of Business Ethics,109(1), 83-96. Freeman, E., Moutchnik, A. (2013). Stakeholder management and CSR: questions and answers.uwf UmweltWirtschaftsForum,21(1-2), 5-9. Freeman, R. E., Rusconi, G., Signori, S., Strudler, A. (2012). Stakeholder theory (ies): Ethical ideas and managerial action.Journal of business ethics,109(1), 1-2. Woolworths.com.au, - Buy Groceries Online. (2017).Woolworths Online. Retrieved 17 March 2017, from https://www.woolworths.com.au/